Interfor Corporation Vancouver, B.C. August 2, 2018

Interfor Corporation Vancouver, B.C. August 2, 2018 Interfor Reports Q2 18 Results Record EBITDA (1) of $124 million on Sales of $620 million Operating Cash Flow (1) of $1.76 per share 49% Annualized Return on Invested Capital US$240 million of New Strategic Capital Projects in the South INTERFOR CORPORATION ( Interfor or the Company ) (TSX: IFP) recorded net earnings in Q2 18 of $63.8 million, or $0.91 per share, compared to $33.0 million, or $0.47 per share in Q1 18 and $24.5 million, or $0.35 per share in Q2 17. Adjusted net earnings in Q2 18 were $68.9 million or $0.98 per share, compared to $36.8 million, or $0.52 per share in Q1 18 and $28.7 million, or $0.41 per share in Q2 17. Adjusted EBITDA was a record $123.8 million on sales of $619.9 million in Q2 18 versus $81.1 million on sales of $527.6 million in Q1 18. Notable items in the quarter included: Higher Lumber Prices The key benchmark prices improved quarter-over-quarter with the SYP Composite, Western SPF Composite and KD H-F Stud 2x4 9 increasing by US$73, US$61 and US$94 per mfbm, respectively. Interfor s average lumber selling price increased $65 from Q1 18 to $753 per mfbm. Increased Production and Shipments Total lumber production was a record 688 million board feet or 22 million board feet more than the prior quarter. Production in the U.S. South region increased to 325 million board feet from 302 million board feet in the preceding quarter. The B.C. and U.S. Northwest regions accounted for 215 million board feet and 148 million board feet, respectively, compared to 218 million board feet and 146 million board feet in Q1 18, respectively. In Q2 18, the B.C Interior operations were negatively impacted by seven days of downtime at the Grand Forks mill, due to severe flooding in the region. Total lumber shipments were 700 million board feet, of which 689 million board feet were Interfor produced volumes, with the balance of 11 million board feet being agency and wholesale volumes. Total lumber shipments were 52 million board feet higher than Q1 18, as Q1 18 shipments were negatively impacted by industry-wide logistics issues, and particularly by weather-impacted rail constraints in B.C. The Company s lumber inventory volume at June 30, 2018 was comparable to March 31, 2018. (1) Refer to Adjusted EBITDA and Operating cash flow per share in the Non-GAAP Measures section

Strong Cash Flows and Liquidity Interfor generated $123.2 million of cash from operations before changes in working capital, or $1.76 per share. Total cash generated from operations was $133.7 million. Net debt ended the quarter at $34.4 million, or 3.4% of invested capital, resulting in available liquidity of $542.3 million. Capital spending was $23.3 million on a mix of high-return discretionary, maintenance and woodlands projects. Softwood Lumber Duties Interfor expensed $14.8 million of duties in the quarter, representing the full amount of countervailing ( CV ) and anti-dumping ( AD ) duties incurred on its Canadian shipments of softwood lumber into the U.S. at a combined rate of 20.23%. Strategic Capital Plan Interfor continues to make progress on its multi-year strategic capital plan that involves a number of discretionary projects designed to capture the opportunities within its current operating platform and to pursue opportunities for further growth. The strategic capital plan was advanced over the past quarter, including site preparation and mill readiness initiatives for the previously announced US$65 million of projects at the Meldrim, GA and Monticello, AR sawmills. The projects remain on track for completion in Q1 19. These projects are designed to increase production capacity by approximately 150 million board feet per year, as well as generate other benefits related to costs and product mix. In addition, the Company has received Board approval to proceed with three new strategic capital projects totaling US$240 million at its Thomaston, GA, Eatonton, GA and Georgetown, SC sawmills. These projects include major modernizations and rebuilds, and are designed to increase production capacity by approximately 275 million board feet per year, as well as substantially reduce cash conversion costs, improve lumber recovery and enhance grade outturns and product mix. The projects are expected to generate a pre-tax cash payback of less than five years, using conservative lumber price assumptions. The projects are expected to be completed in various phases during 2019 to 2021. The Company is also undertaking a number of machine center upgrades at certain mills in B.C., the U.S. Northwest and the U.S. South. These projects are planned for completion over the next 12 to 18 months. The timeline for assessing and deciding upon greenfield sawmill opportunities in the Central Region of the U.S. South has been extended beyond mid-2018, as the Company focused on completing plans for its strategic capital projects. With those projects now underway, the Company is in a position to further develop greenfield opportunities over the coming months. A decision is dependent upon satisfactory conclusion of due diligence and assessment against Interfor s investment criteria. Debt Financing In conjunction with the planned increase in capital spending over the coming several years, Interfor modified its debt financing arrangements in order to further enhance its financial flexibility. In particular, the Company entered into an agreement to extend US$84 million of its 2021 to 2023 term debt maturities to 2027 to 2029. This transaction is expected to close in mid-august, upon which Interfor s weighted average interest rate on its term debt will be 4.47%. In addition, Interfor recently extended the maturity of its US$50 million U.S. Operating Line by two years to June 15, 2021. 2

Financial and Operating Highlights (1) For the 3 months ended For the 6 months ended Jun. 30 Jun. 30 Mar. 31 Jun. 30 Jun. 30 Unit 2018 2017 2018 2018 2017 Financial Highlights (2) Total sales $MM 619.9 511.4 527.6 1,147.5 968.2 Lumber $MM 527.0 433.7 445.9 972.9 823.3 Logs, residual products and other $MM 92.9 77.7 81.7 174.6 144.9 Operating earnings $MM 85.9 42.7 46.5 132.4 73.1 Net earnings $MM 63.8 24.5 33.0 96.8 44.2 Net earnings per share, basic $/share 0.91 0.35 0.47 1.38 0.63 Adjusted net earnings (3) $MM 68.9 28.7 36.8 105.7 51.5 Adjusted net earnings per share, basic (3) $/share 0.98 0.41 0.52 1.51 0.73 Operating cash flow per share (before working capital changes) (3) $/share 1.76 1.05 1.08 2.84 1.90 Adjusted EBITDA (3) $MM 123.8 77.4 81.1 204.8 137.7 Adjusted EBITDA margin (3) % 20.0% 15.1% 15.4% 17.8% 14.2% Total assets $MM 1,536.0 1,296.0 1,410.0 1,536.0 1,296.0 Total debt $MM 263.4 259.5 257.9 263.4 259.5 Net debt to invested capital (3) % 3.4% 21.1% 12.4% 3.4% 21.1% Annualized return on invested capital (3) % 48.5% 28.9% 32.4% 41.3% 26.1% Operating Highlights Lumber production million fbm 688 655 666 1,354 1,295 Total lumber sales million fbm 700 675 648 1,348 1,320 Lumber sales - Interfor produced million fbm 689 654 635 1,324 1,278 Lumber sales - wholesale and commission million fbm 11 21 13 24 42 Lumber - average selling price (4) $/thousand fbm 753 642 688 722 624 Average USD/CAD exchange rate (5) 1 USD in CAD 1.2911 1.3449 1.2647 1.2781 1.3343 Closing USD/CAD exchange rate (5) 1 USD in CAD 1.3168 1.2977 1.2894 1.3168 1.2977 Notes: (1) Figures in this table may not equal or sum to figures presented elsewhere due to rounding. (2) Financial information presented for interim periods in this release is prepared in accordance with IFRS and is unaudited. (3) Refer to the Non-GAAP Measures section of this release for definitions and reconciliations of these measures to figures reported in the Company s consolidated financial statements. (4) Gross sales before duties. (5) Based on Bank of Canada foreign exchange rates. Liquidity Balance Sheet Interfor maintained a strong financial position throughout Q2 18. Net debt at June 30, 2018 was $34.4 million, or 3.4% of invested capital, representing a decrease of $183.8 million from June 30, 2017, and a decrease of $84.9 million from December 31, 2017. The majority of the decrease in net debt in Q2 18 is attributed to strong cash flows generated from operations. Net debt was negatively impacted by a weakened Canadian Dollar against the U.S. Dollar as all debt held was denominated in U.S. Dollars; this was partially hedged by the Company s U.S. Dollar cash balances. 3

For the 3 months ended Jun. 30, For the 6 months ended Jun. 30, Thousands of Dollars 2018 2017 2018 2017 Net debt Net debt, period opening, CAD $127,064 $306,676 $119,300 $289,551 Net repayment on credit facilities, CAD - (59,468) (1) (40,218) Impact on U.S. Dollar denominated debt from (strengthening) weakening CAD 5,480 (6,359) 12,461 (9,063) Increase in cash and cash equivalents, CAD (98,129) (22,597) (97,345) (22,018) Net debt, period ending, CAD $34,415 $218,252 $34,415 $218,252 Net debt components by currency U.S. Dollar debt, period opening, USD $200,000 $235,979 $200,000 $230,000 Net repayment on credit facilities, USD - (35,979) - (30,000) U.S. Dollar debt, period ending, USD 200,000 200,000 200,000 200,000 Spot rate, period end 1.3168 1.2977 U.S. Dollar debt expressed in CAD 263,360 259,540 Total debt, CAD 263,360 259,540 Cash and cash equivalents, CAD (228,945) (41,288) Net debt, period ending, CAD $34,415 $218,252 As at June 30, 2018, the Company had net working capital of $417.1 million and available liquidity of $542.3 million, including unrestricted cash and borrowing capacity on operating and term line facilities. On June 15, 2018, the Company extended the maturity of its U.S. Operating line from May 1, 2019 to June 15, 2021, with no other significant changes. On July 10, 2018, Interfor entered into an agreement to extend US$84 million of its 2021 to 2023 Senior Secured Note maturities to 2027 to 2029. Upon completion of this transaction, which is expected in mid-august, Interfor s weighted average interest rate on its term debt will be 4.47%. These resources, in addition to cash generated from operations, will be used to support capital expenditures, working capital requirements and debt servicing commitments. We believe that Interfor will have sufficient liquidity to fund operating and capital requirements for the foreseeable future. Capital Resources The following table summarizes Interfor s credit facilities and availability as of June 30, 2018: Revolving Senior U.S. Operating Term Secured Operating Thousands of Canadian Dollars Line Line Notes Line Total Available line of credit $65,000 $200,000 $263,360 $65,840 $594,200 Maximum borrowing available $65,000 $200,000 $263,360 $65,840 $594,200 Less: Drawings - - 263,360-263,360 Outstanding letters of credit included in line utilization 13,899 - - 3,239 17,138 Unused portion of facility $51,101 $200,000 $ - $62,601 313,702 Add: Unrestricted cash and cash equivalents 228,635 Available liquidity at June 30, 2018 $542,337 As of June 30, 2018, the Company had commitments for capital expenditures totaling $44.9 million. 4

Non-GAAP Measures This MD&A makes reference to the following non-gaap measures: Adjusted net earnings, Adjusted net earnings per share, EBITDA, Adjusted EBITDA, Net debt to invested capital, Operating cash flow per share (before working capital changes) and Return on invested capital which are used by the Company and certain investors to evaluate operating performance and financial position. These non-gaap measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. The following table provides a reconciliation of these non-gaap measures to figures as reported in the Company s unaudited interim consolidated financial statements prepared in accordance with IFRS: For the 3 months ended For the 6 months ended Jun. 30 Jun. 30 Mar.31 Jun. 30 Jun. 30 Thousands of Canadian Dollars except number of shares and per share amounts 2018 2017 2018 2018 2017 Adjusted Net Earnings Net earnings $63,775 $24,512 $32,976 $96,751 $44,179 Add: Restructuring costs and capital asset write-downs 4,669 1,457 236 4,905 1,802 Other foreign exchange loss (gain) (1,880) 913 (111) (1,991) 1,094 Long term incentive compensation expense 3,996 3,270 4,858 8,854 6,863 Other expense 80 456 178 258 645 Post closure wind-down costs and losses - 5 4 4 13 Income tax effect of above adjustments (1,701) (1,883) (1,374) (3,075) (3,132) Adjusted net earnings $68,939 $28,730 $36,767 $105,706 $51,464 Weighted average number of shares - basic ('000) 70,038 70,030 70,033 70,036 70,030 Adjusted net earnings per share $0.98 $0.41 $0.52 $1.51 $0.73 Adjusted EBITDA Net earnings $63,775 $24,512 $32,976 $96,751 $44,179 Add: Depreciation of plant and equipment 20,851 19,967 20,068 40,919 39,570 Depletion and amortization of timber, roads and other 8,350 10,024 9,417 17,767 16,321 Restructuring costs and capital asset write-downs 4,669 1,457 236 4,905 1,802 Finance costs 2,786 3,535 2,905 5,691 7,597 Other foreign exchange loss (gain) (1,880) 913 (111) (1,991) 1,094 Income tax expense 21,132 13,289 10,533 31,665 19,609 EBITDA 119,683 73,697 76,024 195,707 130,172 Add: Long term incentive compensation expense 3,996 3,270 4,858 8,854 6,863 Other expense 80 456 178 258 645 Post closure wind-down costs and losses - 5 4 4 13 Adjusted EBITDA $123,759 $77,428 $81,064 $204,823 $137,693 Sales $619,893 $511,376 $527,644 $1,147,537 $968,156 Adjusted EBITDA margin 20.0% 15.1% 15.4% 17.8% 14.2% Net debt to invested capital Net debt Total debt $263,360 $259,540 $257,880 $263,360 $259,540 Cash and cash equivalents (228,945) (41,288) (130,816) (228,945) (41,288) Total net debt $34,415 $218,252 $127,064 $34,415 $218,252 Invested capital Net debt $34,415 $218,252 $127,064 $34,415 $218,252 Shareholders' equity 977,294 816,136 901,176 977,294 816,136 Total invested capital $1,011,709 $1,034,388 $1,028,240 $1,011,709 $1,034,388 Net debt to invested capital (1) 3.4% 21.1% 12.4% 3.4% 21.1% Operating cash flow per share (before working capital changes) Cash provided by operating activities $133,729 $105,816 $18,511 $152,240 $110,498 Cash used in (generated from) operating working capital (10,579) (32,531) 56,973 46,394 22,502 Operating cash flow (before working capital changes) $123,150 $73,285 $75,484 $198,634 $133,000 Weighted average number of shares - basic ('000) 70,038 70,030 70,033 70,036 70,030 Operating cash flow per share (before working capital changes) $1.76 $1.05 $1.08 $2.84 $1.90 Annualized return on invested capital Adjusted EBITDA $123,759 $77,428 $81,064 $204,823 $137,693 Invested capital, beginning of period $1,028,240 $1,111,424 $973,488 $973,488 $1,076,218 Invested capital, end of period 1,011,709 1,034,388 1,028,240 1,011,709 1,034,388 Average invested capital $1,019,975 $1,072,906 $1,000,864 $992,599 $1,055,303 Adjusted EBITDA divided by average invested capital 12.1% 7.2% 8.1% 20.6% 13.0% Annualization factor 4.0 4.0 4.0 2.0 2.0 Annualized return on invested capital 48.5% 28.9% 32.4% 41.3% 26.1% Notes: (1) Net debt to invested capital as of the period end. 5

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the three and six months ended June 30, 2018 and 2017 (unaudited) (thousands of Canadian Dollars except earnings per share) Three Months Three Months Six Months Six Months Jun. 30, 2018 Jun. 30, 2017 Jun. 30, 2018 Jun. 30, 2017 Sales $619,893 $511,376 $1,147,537 $968,156 Costs and expenses: Production 467,355 414,205 886,937 798,282 Selling and administration 13,952 12,435 28,025 24,881 Long term incentive compensation expense 3,996 3,270 8,854 6,863 U.S. countervailing and anti-dumping duty deposits 14,827 7,313 27,756 7,313 Depreciation of plant and equipment 20,851 19,967 40,919 39,570 Depletion and amortization of timber, roads and other 8,350 10,024 17,767 16,321 529,331 467,214 1,010,258 893,230 Operating earnings before restructuring costs 90,562 44,162 137,279 74,926 Restructuring costs 4,669 1,457 4,905 1,802 Operating earnings 85,893 42,705 132,374 73,124 Finance costs (2,786) (3,535) (5,691) (7,597) Other foreign exchange gain (loss) 1,880 (913) 1,991 (1,094) Other expense (80) (456) (258) (645) (986) (4,904) (3,958) (9,336) Earnings before income taxes 84,907 37,801 128,416 63,788 Income tax expense: Current 1,567 380 2,337 686 Deferred 19,565 12,909 29,328 18,923 21,132 13,289 31,665 19,609 Net earnings $63,775 $24,512 $96,751 $44,179 Net earnings per share, basic and diluted $0.91 $0.35 $1.38 $0.63 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the three and six months ended June 30, 2018 and 2017 (unaudited) (thousands of Canadian Dollars) Three Months Three Months Six Months Six Months Jun. 30, 2018 Jun. 30, 2017 Jun. 30, 2018 Jun. 30, 2017 Net earnings $63,775 $24,512 $96,751 $44,179 Other comprehensive income (loss): Items that will not be recycled to Net earnings: Defined benefit plan actuarial gain (loss), net of tax 1,004 (1,222) 1,889 (398) Items that are or may be recycled to Net earnings: Foreign currency translation differences for foreign operations, net of tax 11,130 (12,057) 23,977 (14,562) Loss in fair value of interest rate swaps - - - (11) Total items that are or may be recycled to Net earnings 11,130 (12,057) 23,977 (14,573) Total other comprehensive income (loss), net of tax 12,134 (13,279) 25,866 (14,971) Comprehensive income $75,909 $11,233 $122,617 $29,208 6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the three and six months ended June 30, 2018 and 2017 (unaudited) (thousands of Canadian Dollars) Three Months Three Months Six Months Six Months Jun. 30, 2018 Jun. 30, 2017 Jun. 30, 2018 Jun. 30, 2017 Cash provided by (used in): Operating activities: Net earnings $63,775 $24,512 $96,751 $44,179 Items not involving cash: Depreciation of plant and equipment 20,851 19,967 40,919 39,570 Depletion and amortization of timber, roads and other 8,350 10,024 17,767 16,321 Income tax expense 21,132 13,289 31,665 19,609 Finance costs 2,786 3,535 5,691 7,597 Other assets (122) 231 (417) 182 Reforestation liability (862) (234) 1,427 2,309 Provisions and other liabilities 2,386 1,232 (456) 2,047 Stock options 209 155 346 261 Write-down of plant, equipment and intangibles 4,645-4,864 - Unrealized foreign exchange gain (80) (1) (181) (9) Other expense 80 575 258 934 123,150 73,285 198,634 133,000 Cash generated from (used in) operating working capital: Trade accounts receivable and other (13,074) 3,312 (23,970) (12,256) Inventories 2,111 (432) (31,926) (15,672) Prepayments 1,541 2,365 (2,784) (419) Trade accounts payable and provisions 21,152 27,415 13,608 6,265 Income taxes paid (1,151) (129) (1,322) (420) 133,729 105,816 152,240 110,498 Investing activities: Additions to property, plant and equipment (15,126) (10,409) (27,165) (23,152) Additions to roads and bridges (8,086) (9,429) (14,168) (16,531) Additions to timber licences and other intangible assets (63) (531) (50) (1,365) Proceeds on disposal of property, plant and equipment 76 423 185 398 Investments and other assets (13,079) (35) (13,565) (152) (36,278) (19,981) (54,763) (40,802) Financing activities: Issuance of share capital, net of expenses - - 143 - Interest payments (2,438) (3,211) (5,114) (6,753) Debt refinancing costs (2) (42) (3) (170) Change in operating line components of long-term debt - (40,918) (1) (65) Additions to long term debt - - - 76,107 Repayments of long term debt - (18,550) - (116,260) (2,440) (62,721) (4,975) 47,141 Foreign exchange gain (loss) on cash and cash equivalents held in a foreign currency 3,118 (517) 4,843 (537) Increase in cash 98,129 22,597 97,345 22,018 Cash and cash equivalents, beginning of period 130,816 18,691 131,600 19,270 Cash and cash equivalents, end of period $228,945 $41,288 $228,945 $41,288 7

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION June 30, 2018 and December 31, 2017 (unaudited) (thousands of Canadian Dollars) Jun. 30, 2018 Dec. 31, 2017 Assets Current assets: Cash and cash equivalents $228,945 $131,600 Trade accounts receivable and other 138,804 112,470 Income taxes receivable 511 1,289 Inventories 200,509 165,156 Prepayments 15,848 12,562 Investments and other assets 13,168-597,785 423,077 Employee future benefits 2,662 502 Investments and other assets 7,053 6,404 Property, plant and equipment 672,692 670,830 Roads and bridges 25,275 24,092 Timber licences 65,402 66,589 Other intangible assets 10,677 14,170 Goodwill 153,736 147,081 Deferred income taxes 713 251 $1,535,995 $1,352,996 Liabilities and Shareholders Equity Current liabilities: Trade accounts payable and provisions $167,625 $152,854 Reforestation liability 12,718 12,873 Income taxes payable 332 224 180,675 165,951 Reforestation liability 29,259 27,535 Long term debt 263,360 250,900 Employee future benefits 8,116 8,249 Provisions and other liabilities 26,595 26,976 Deferred income taxes 50,696 19,197 Equity: Share capital 555,602 555,388 Contributed surplus 8,857 8,582 Translation reserve 64,697 40,720 Retained earnings 348,138 249,498 977,294 854,188 $1,535,995 $1,352,996 Approved on behalf of the Board: L. Sauder Director Thomas V. Milroy Director 8

FORWARD-LOOKING STATEMENTS This release contains information and statements that are forward-looking in nature, including, but not limited to, statements containing the words believes, will, should, expects, annualized and similar expressions. Such statements involve known and unknown risks and uncertainties that may cause Interfor s actual results to be materially different from those expressed or implied by those forward-looking statements. Such risks and uncertainties include, among other things: price volatility, competition, availability and cost of log supply, natural or man-made disasters, currency exchange sensitivity, regulatory changes, allowable annual cut reductions, Aboriginal title and rights claims, potential countervailing and anti-dumping duties, stumpage fee variables and changes, environmental impact and performance, labour disruptions, cyber-security measures, and other factors referenced herein and in Interfor s Annual Report available on www.sedar.com and www.interfor.com. The forward-looking information and statements contained in this release are based on Interfor s current expectations and beliefs. Readers are cautioned not to place undue reliance on forward-looking information or statements. Interfor undertakes no obligation to update such forward-looking information or statements, except where required by law. ABOUT INTERFOR Interfor is a growth-oriented lumber company with operations in Canada and the United States. The Company has annual production capacity of approximately 3.1 billion board feet and offers one of the most diverse lines of lumber products to customers around the world. For more information about Interfor, visit our website at www.interfor.com. The Company s unaudited consolidated financial statements and Management s Discussion and Analysis for Q2 18 are available at www.sedar.com and www.interfor.com. There will be a conference call on Friday, August 3, 2018 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company s release of its second quarter 2018 financial results. The dial-in number is 1-866-559-8291. The conference call will also be recorded for those unable to join in for the live discussion, and will be available until September 4, 2018. The number to call is 1-855-859-2056, Passcode 3395576. For further information: Martin L. Juravsky, Senior Vice President and Chief Financial Officer (604) 689-6873 9